LANSING – The Michigan House of Representatives today passed a plan introduced by State Representatives Bert Johnson (D-Detroit) and Shanelle Jackson (D-Detroit) to help better protect Michigan residents from identity theft. The plan is part of a comprehensive package to toughen penalties for identity thieves and strengthen consumer protections for victims.
"With today's technology, a thief can steal from you without leaving the comforts of his or her own home," Johnson said. "Advanced devices like cell phones and computers are creating avenues for criminals to steal identities while leaving more consumers vulnerable to theft. Especially in these tough economic times, our laws must keep pace with high-tech thieves and protect our identities and livelihoods."
The plan sponsored by Johnson and Jackson will require businesses to have a written identity theft prevention plan to protect consumers, as well as force identity thieves to compensate victims for damage done to their financial affairs and credit history and require courts to order restitution for victims.
"As a victim of identity theft, I know first-hand the time and money it takes to fight this crime," Jackson said. "It's a battle that doesn't affect just consumers, but also entire families. With all the financial challenges Detroiters are facing every day, they shouldn't have to deal with a crime that is totally preventable. This plan will not only help residents protect their personal information, but it will help victims recoup the thousands of dollars it can cost to get their lives back."
Other parts of the plan will:
- Protect customers' personal information by requiring that any data that includes unencrypted or unredacted personal information be destroyed when it is removed from the database of a business or agency.
- Prohibit an individual from using another person's personal information to mislead law enforcement officials or courts regarding an individual under investigation.
- Create the Identity Theft Commission, a group within the Michigan Department of Information Technology that will study new and evolving ways to prevent identity theft.
Identity theft is the fastest growing type of fraud in the country. In 2008, about 9.9 million Americans reported being victims of identity theft – a 22 percent increase from 2007, according to the U.S. Congressional Research Service. According to the Federal Trade Commission (FTC), identity theft costs consumers nearly $50 billion each year.